By default after a kernel panic, system just waits there for a restart. This is because of the value set on "kernel.panic" parameter.
# cat /proc/sys/kernel/panic
0
To disable this and make the Linux OS reboot after a kernel panic, we have to set an integer value greater than zero to the paramter "kernel.panic", where the value is the number of seconds to wait before a automatic reboot. For example , if you set it to "10" , then the system waits for 10 seconds before automatic reboot. To make this permanent, edit /etc/sysctl.conf and add following like at end of the file.
kernel.panic = 10
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source:http://linuxpoison.blogspot.com/2009/07/135781757110396.html